Bimantara to float 200m shares
Bimantara to float 200m shares
JAKARTA (JP): PT Bimantara Citra, which is chaired by Bambang Trihatmodjo, plans to float new shares on the Jakarta Stock Exchange (JSX) in the middle of this year.
Bambang said yesterday that 200 million shares, representing 20 percent of the company's enlarged number of common shares, would be offered to the public in either June or July this year.
"However, if the market is bearish, we may postpone the initial public offering until the market recovers. But for sure, we will float them sometime this year," Bambang said at a halal bi halal (ritual for asking forgiveness) gathering hosted by Bimantara.
He said the public offering had been planned to coincide with Indonesia's 50th anniversary in August.
When asked, Bambang declined to reveal how much money the company expects to raise through the public offering or what the funds will be used for, saying only that his company was still studying the matter.
Bimantara Citra, a holding company of the Bimantara Group, controls 26 subsidiaries whose business interests include transportation, telecommunications, property, automotive assembling and broadcasting.
"The 26 companies are the selected ones, and therefore all of them have good performance," Bambang said.
More than 100 companies operate under the umbrella of the Bimantara Group, which recorded total assets of more than US$2 billion in 1993.
Bambang said Bimantara Citra was also preparing initial public offerings for its subsidiaries: PT Electrindo and PT Rajawali Citra Televisi Indonesia (RCTI), the country's first private television station.
Last year, Bimantara made plans to get its TV station listed on the JSX. But the effort was abandoned because the ministry of information would not allow foreigners to own shares in the broadcasting company.
"For RCTI, we are ready to float shares anytime the government gives its permission. For Electrindo, maybe next year," Bambang said.
He said that Makindo might act as the lead underwriter for Bimantara Citra's initial offering. "We are still negotiating with Makindo."
To promote the share issue, he said, Bimantara Citra will conduct an international roadshow in May to present the company to potential foreign investors. The roadshow, which is likely to be led by Bambang himself, will cover Hong Kong, Japan, Germany and the United States.
Explanations
Meanwhile, a securities analyst from a foreign-owned brokerage firm who closely watches the Bimantara Group told The Jakarta Post yesterday that most institutional foreign investors would demand elaborate explanations about the Group's long-term strategies in developing their core business.
"Bimantara's diversified subsidiaries represent a typical phenomenon of big companies in emerging markets. The company, however, must convince potential investors about their fundamentals and long-term plans," he said.
This might force the group to address questions about its political connections, he said.
The analyst said Bimantara's share issues had a "good chance" of luring foreign buyers since the group intended to include "attractive" subsidiaries in the listing, such as RCTI (television), the Mercedes Benz-assembly plant and the group's telecommunications arms.
"Television and telecommunications are popular in the market now and everybody knows about Mercedes," he said.
The analyst warned that foreign investors might examine whether state-controlled pension funds will be "forced" to buy Bimantara's shares in the case of a lukewarm market reaction.
"If this scenario takes place, it will create the impression that the government is only half-hearted about deregulating the economy, especially with regard to state-pension funds," he said.
"However, I wonder if Bimantara really needs the money from the issuance," he said.
"I know that a lot of analysts think that the listing plan is not based entirely on economic considerations," the analyst added. (rid/hdj)